A federal judge in Iowa has ruled against a landholding company that sought to dismantle a long-standing wetlands law called swampbuster.
Under the Farm Bill conservation provision, the U.S. Department of Agriculture can withhold federal subsidies, like crop insurance and disaster payments, from farmers who clear, drain or convert designated wetlands.
CTM Holdings, a company that owns around 800 acres in Iowa, argued that the swampbuster law unconstitutionally restricts what farmers can do with their property.
Chief Judge C.J. Williams in the Northern District of Iowa dismissed CTM Holdings’ claims, saying swampbuster falls within the spending power of Congress. Congress can attach conditions to federal funds “in pursuit of the general welfare, and may require a recipient’s compliance with conditions to receive the funding."
Williams said CTM Holdings had voluntarily accepted the conditions for USDA benefits.
“In return, plaintiff is agreeing to not destroy or alter its wetlands in a way that makes the cultivating of an agricultural commodity possible on that land,” Williams stated.
Liberty Justice Center, one of the law firms representing CTM Holdings, said in an X post that it will appeal the decision to the Eighth Circuit Court of Appeals.
“We’re confident that the appellate court will ultimately rule that this federal law is unconstitutional. This law has been taking land from farmers for years, and we look forward to continuing to fight,” Liberty Justice Center stated.
Several environmental and sustainable agriculture groups intervening in the case called the ruling a win for wetlands, habitat and water quality throughout the U.S.
“This is a decisive victory for wetlands and for everyone who understands how important wetlands are for climate resiliency and wildlife habitat,” said Dani Replogle, a staff attorney with Food and Water Watch.
Replogle said wetlands should not be sacrificed for corporate landlords and that swampbuster helps ensure sustainable farming for future generations.
The conservation provision was added to the 1985 Farm Bill. Over half of the original wetlands in the lower 48 states had been lost by then, largely through agricultural drainage.
Michael Schmidt, general counsel for the Iowa Environmental Council, said in a press release that the court’s decision upholds a foundational and practical conservation measure.
“It was approved by Congress to protect wetlands, prevent flooding, improve water quality and retain habitat,” Schmidt said. “Commonsense measures like swampbuster support Iowa farmers and everyone downstream from them.”
Wetlands help store heavy rainfall and floodwater. They also filter nitrates, phosphorus and other nutrients from water flushed from farm fields and provide habitat for fish, birds and other wildlife. Around half of all federally listed species in the U.S. depend on these ecosystems.
The USDA looks at three factors when determining a wetland classification: hydrology, soil type and the prevalence of plants that live in water or saturated soil. Many wetlands do not contain water year-round.
